On 10 September 2023, India and Saudi Arabia forged an energy partnership by inking a Memorandum of Understanding (MoU) in New Delhi. This collaborative agreement, focusing on energy cooperation, was signed by the Indian Union Minister for New & Renewable Energy and Power and His Royal Highness Abdulaziz bin Salman Al-Saud, the Minister of Energy for Saudi Arabia.
This MoU outlines several areas of cooperation, including:
- Advancements in renewable energy and energy efficiency.
- Collaborative efforts in hydrogen production, electricity, and establishing grid connections between both nations.
- Cooperation in petroleum, natural gas, strategic petroleum reserves, and fortifying energy security.
- Bolstering bilateral investments in renewable energy, electricity, hydrogen storage, as well as the oil and gas sector.
- Adopting the circular economy and its innovations to combat climate repercussions, notably through carbon capture, utilization, and storage.
- Championing digital transformation within the energy sector, emphasizing innovation, cybersecurity, and artificial intelligence.
- Aiming to establish qualitative partnerships that promote the localization of energy-related materials, products, services, and technology supply chains.
- Strengthening ties with specialized energy companies.
- Exploring any other potential energy-related fields mutually agreed upon.
Saudi Arabia is one of India’s most important strategic partners in the Middle East. Trade between the countries stood at over USD 52.8 billion in the fiscal 2022-2023. Further, in August 2023, Saudi Arabia emerged as the second-biggest oil supplier to India overtaking Russia.
Further, in the recently concluded G-20 summit at New Delhi, India and Saudi Arabia joined the European Union and the United States in launching the Partnership for Global Infrastructure and Investment (PGII) and India-Middle East-Europe Economic Corridor.
Photo Source: PIB.gov.in